811.24591/12–1445: Telegram

The Ambassador in Iran (Murray) to the Secretary of State

1127. Contract covering sale immovable surplus property (including British minority interest involved therein) in Iran, 184 railway tank cars and 25 cabooses to Iran Govt was signed Dec 12 in amount $2,819,983.47 and payment made in 3 notes each in amount $939,994.49 payable respectively on Dec 12, 1948, 1950 and 1952. General Connolly authorized waiver interest on principal of notes.

British disposal officials agreed to sale British minority interest in property on same basis (i.e. 7½% of invested cost) as US majority interest but details of US reimbursement to British still under negotiation.

Upon signing above sales contract I presented note92 to Minister Finance stating title to immovable property will be transferred to Iran Govt at any time prior Mar 2 next year in discretion either Iran [Page 580] Govt or Embassy. Advisability changing condition of title transfer from mutual consent as stated in second paragraph Embtel 1079, Dec 693 to discretion of Embassy arose from possibility Iranians may experience difficulty in getting guard detachment to Qazvin or may be tardy or otherwise delinquent in accepting custody of camp.

As Dept will realize from first paragraphs Embtel 1013, Nov 28 and 1080 Dec 694 Alluh’s [all?] property in Iran thus far declared surplus was disposed of by JPMB95 and FLC (Foreign Liquidation Commission), prior to arrival on Dec 8 and without assistance of General Connolly (Deptel 666, Dec 396). Connolly and General Giles97 departed today. Disposal property not yet declared surplus will proceed soon as so declared.

Murray
  1. Dated December 12.
  2. Not printed; it stated: “To prevent Russians from pre-empting US Army camps in northern Iran … and at request of Shah and Iran Government, title to immovable surplus property will not pass to Iran until some date mutually agreeable to Embassy and Iranians. Ultimate date for transfer title March 2 next year.” (891.24591/12–645)
  3. Neither printed.
  4. Presumably a garble; may refer to the Ambassador.
  5. Not printed; it advised that a mission headed by Major General Connolly, the Deputy Foreign Liquidation Commissioner, had left by air for Iran on December 2 in connection with the disposal of surplus property and that Harold B. Minor, who was designated Chief of the Division of Middle Eastern Affairs on December 3, was accompanying him (811.24591/12–345).
  6. Maj. Gen. Benjamin F. Giles, Commanding General, Africa–Middle East Theater.